Definitions

from The American Heritage® Dictionary of the English Language, 4th Edition

  • n. A prize or award.
  • n. Something offered free or at a reduced price as an inducement to buy something else.
  • n. A sum of money or bonus paid in addition to a regular price, salary, or other amount.
  • n. The amount paid, often in addition to the interest, to obtain a loan.
  • n. The amount paid or payable, often in installments, for an insurance policy.
  • n. The amount at which something is valued above its par or nominal value, as money or securities.
  • n. The amount at which a securities option is bought or sold.
  • n. Payment for training in a trade or profession.
  • n. An unusual or high value: Employers put a premium on honesty and hard work.
  • adj. Of superior quality or value: premium gasoline.
  • idiom at a premium More valuable than usual, as from scarcity: Fresh water was at a premium after the reservoir was contaminated.

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • adj. Superior in quality; higher in price or value.
  • n. A prize or award.
  • n. Something offered at a reduced price as an inducement to buy something else.
  • n. A bonus paid in addition to normal payments.
  • n. The amount to be paid for an insurance policy.
  • n. An unusually high value.
  • n. The amount by which a security's value exceeds its face value.

from the GNU version of the Collaborative International Dictionary of English

  • n. A reward or recompense; a prize to be won by being before another, or others, in a competition; reward or prize to be adjudged; a bounty
  • n. Something offered or given for the loan of money; bonus; -- sometimes synonymous with interest, but generally signifying a sum in addition to the capital.
  • n. A sum of money paid to underwriters for insurance, or for undertaking to indemnify for losses of any kind.
  • n. A sum in advance of, or in addition to, the nominal or par value of anything

from The Century Dictionary and Cyclopedia

  • n. A reward; a recompense given for a particular action or line of conduct.
  • n. That which is given for the loan of money; interest.
  • n. In insurance, the amount paid or agreed to be paid in one sum or periodically to insurers as the consideration for a contract of insurance. See insurance, 2.
  • n. In banking and currency, the difference by which the value of one metallic currency exceeds that of another of the same denomination, or by which a metallic currency exceeds a paper currency of the same denomination in the same country; agio: the opposite of discount, or disagio, which is the amount by which the value of one currency has depreciated when compared with another.
  • n. In stock-broking, etc., the percentage of difference by which the market price of shares, stocks, bonds, etc., exceeds their face-value or the sum originally paid for them: thus, when stock originally issued at $100 per share sells at $140 per share, it is said to be at a premium of 40 per cent.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

  • n. payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military
  • n. a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.
  • adj. having or reflecting superior quality or value
  • n. the amount that something in scarce supply is valued above its nominal value
  • n. payment for insurance
  • n. a fee charged for exchanging currencies

Etymologies

Latin praemium, inducement, reward : prae-, pre- + emere, to take, buy.
(American Heritage® Dictionary of the English Language, Fourth Edition)

Examples

  • Bear in mind that we do not give a premium or open an account for less than _two_ subscriptions (one of which, however, may be your own); but, _after the account is opened_, you may add one subscription at a time if you choose -- never omitting to state in your letter _that it is to go to your credit for a premium_.

    The Nursery, January 1877, Volume XXI, No. 1 A Monthly Magazine for Youngest Readers

  • Now, the GOP prefers the term "premium support" for voucher because "voucher" carries a negative connotation.

    Politifact Has Decided That A Totally True Thing Is The "Lie Of The Year," For Some Reason

  • The term "premium online video" has often been used to refer to programming produced by Hollywood studios and programmers, but premium is now increasingly being defined by the marketer and by the viewer, said online video ad experts during the Beet.

    Andy Plesser: "Premium Video" Is Defined by Both Producer and Audience

  • One explanation is that there has been a dramatic drop in the term premium, that is, a decline in the extra expected return that investors require in order to hold long-term securities.

    In Defense of Corporate Taxes

  • Aaron and Brookings are the two gentlemen who originally came up with the term "premium support" to describe their idea for a Medicare system where the program is opened up to competition by private insurers but has safeguards built in to protect Medicare beneficiaries from the very cost shifting program the Ryan plan proposes.

    Forbes.com: News

  • These new spirits cost so much, in fact, that the term premium no longer covers it--there's now a super-premium category and an ultra-premium category.

    Spirits Gift GuideGifts For The Spirit Drinker

  • "The market would have to anticipate a hike for the 10- year yield to get to four percent," said Pandl, who uses a version of the term premium model to help value Treasuries.

    BusinessWeek.com -- Top News

  • "The term premium tells you that we are at a much healthier level today," Priya Misra, head of U.S. rates strategy at Bank of America Merrill Lynch in New York, said in an interview.

    BusinessWeek.com -- Top News

  • The term premium won't climb much as the central bank keeps its target rate for overnight loans between banks steady in a range of zero to 0.25 percent because the rate of inflation remains low, according to Zach Pandl, an economist at Nomura Securities International Inc. in New York.

    BusinessWeek.com -- Top News

  • The term premium fell as low as negative 0.44 percent on Nov. 4, the day after the Fed announced it would conduct a second round of monetary easing through the purchase of Treasuries known as quantitative easing.

    BusinessWeek.com -- Top News

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